1. Rent problem: One of the direct reasons for the closure of Pangdonglai Department Store located in Shi Sheng Building on Pingyuan Road is that the landlord did not choose to renew the contract because the rent expired, and the store was taken over by other merchants. Market changes and the impact of e-commerce: Fat Donglai Xinxiang Store was affected by the development of e-commerce, and the turnover of physical department stores fell sharply, probably because consumers' shopping habits turned online, which affected the income of physical stores.
2. Strategic adjustment: According to the announcement of the enterprise at that time and the statement of Yu Donglai, the chairman of the board, closing Xinxiang Store is a strategic adjustment within the enterprise, including but not limited to the evaluation of the existing management ability and the re-planning of the future development layout. Scale bottleneck and benefit consideration: It is reported that two stores in Pangdong, Xinxiang failed to meet the requirements of the company headquarters in some key performance indicators, in order to ensure the overall benefit of the enterprise.
After the lease contract expired, the headquarters decided to close the underperforming stores. Staff training and placement: When Pang Donglai announced the closure of the store, he also stressed that he would compensate employees reasonably and use that time to improve his ability and prepare for his future career.